Katie
Property pledged to assure repayment of debt is known as?
Collateral
What's the net worth of a firm with $220,000 in assets and $150,000 in liabilities?
$70,000 (= $220,000 - $150,000)
The highest financial strength bond rating is?
AAA (Triple A)
The current ratio is calculated by:
total current assets divided by
total current liabilities
What is a realized increase in the value of a capital asset called, as when a share is sold for more than the price at which it was purchased?
Capital Gains
What form of business is owned by its customers?
Cooperative
What are four of the traditional demand shifters? (we learned this in price people)
population
income of consumers
taste and preferences of consumers
price of related goods
consumer expectations
A budgeting concept that analyzes a projected change in the business.
Partial Budgeting
The inclusive annual time period used by an organization to budget, account for, and report on operations is the organization's:
Fiscal Year
What is the name of the credit instrument that is used when a loan is secured by real estate?
Mortgage
What is a bond rated below investment grade called?
Junk Bond
Similar to a bank, what is a member-owned financial cooperative?
Credit Union
What is the difference in value between current assets and current liabilities (hint: a measure of liquidity)?
Working Capital
What is the term for a cash outlay that has already been incurred and cannot be recovered regardless of whether a project is accepted or rejected?
Sunk Cost
What is the term for a financial asset whose value is derived from the value of some underlying asset?
Derivative
What do you call the practice of switching short-term funds from one investment to another in order to obtain the best return?
Arbitrage
Name the two basic discounted cash flow methods that provide information for capital budgeting decisions.
NPV and IRR
What are the four types of business ownership?
(1) Sole proprietor;(2)
Partnership; (3) Corporation; (4)
Cooperative
Agricultural economists have proposed that there are "three R's" of credit-worthiness for farmers. Name them.
Risk-bearing ability, Returns and
Repayment capacity
What is a measure of a stock's volatility relative to that of an average stock?
Beta
If you receive a bill from a supplier that states; "2/10 net 30," what does it mean?
2 percent discount if paid in 10
days, entire amount due in 30
days
Who's law suggests that as a consumer's income rises, the proportion of income spent on food declines ?
If for the production function Y = f(x) it is also true that 2Y = 2 times f(x), then this operation is an example of ___________?
Constant Returns to Scale
The adjusted basis of an asset for tax purposes is determined by:
Cost basis less depreciation
What are the three functions of money?
Exchange, Accounting, and
Storage of Value